Hi Shoppers,
I would like to review my trade ideas I presented to you on Thursday evening.
To all of you that were there, thank you for joining me!
I hope you enjoyed it as much as I did.
I would love to see you all every Tuesday at noon ET for my Option Shopper Shopping Sprees.
First one starts this Tuesday! Be there!
Those of you who didn’t make it can watch the replay here, if you like.
So on the Citigroup (Ticker: C) stock chart, I saw what looked like the perfect hammer candlestick formation.
Look at that, it looks perfect.
But check out what C proceeded to do on Friday:
It opened lower and traded DOWN almost two bucks!!
So that beauty of a hammer did not pan out.
BUT, since I waited for the confirmation (a huge step in my Option Shopper Method), no trade was made and no money was lost!
The same thing happened in the SPDR S&P 500 (Ticker: SPY) trade idea I gave out:
Wednesday’s candle looked just like a hanging man and Thursday was a confirmation candle but it didn’t happen.
On Thursday, SPY opened and traded lower, but Friday was a different story:
SPY opened higher and traded higher. No trade, no loss.
Is Friday’s candle in SPY a hanging man?
You know I will be watching the opening and that first hour of trading in SPY.
If it does open and trade lower, I will be a buyer of the Dec15 puts:
I will buy the Dec15 471-strike puts with an implied volatility of 10.69 and sell the Dec15 466-strike puts with an implied vol of 12.74.
I will pay $1.40-$1.50 for this five point spread.
I only have until Wednesday afternoon for this to happen, so I am looking for a quick move lower.
If that doesn’t happen, I will take my losses at $1.00. I will take my profits as the spread trades $2.60.
I will also be watching McDonald’s (Ticker: MCD):
If MCD opens and trades lower, I be a buyer of the Dec17 puts:
I will buy the Dec17 265-strike puts with an implied volatility of 12.81 and sell the Dec17 260-strike puts with an implied vol of 15.79.
Nice vol difference equals great edge!
If MCD opens and trades lower I will pay up to $1.45 for this five point spread expiring on Friday.
I will begin profit taking at $2.50 and take my losses at $1.00.
Trade Review
On Wednesday I recommended buying calls in Pinterest (Ticker: PINS).
I ended up paying $1.22 for the Dec17 40-strike calls, which traded up over $2.00 the same day.
I kept them until Thursday when the PINS and the market in general seemed to be wavering, I sold them for $1.52. A 24% gain.
Thank goodness I did, the market rallied but PINS fell out of bed, trading down $2.10 and another $2.05 on Friday!
Once you become an official Options Shopper with me, you will get my entry and exit prices in real time via text message and email.
Come and join me on my Shopping Sprees, too! Live every Tuesday at noon ET for Option Shopper members.
Thanks for Reading … See You THIS Tuesday!
Licia Leslie